Geneva: The United Nations on Wednesday launched a funding program aimed at preventing the Afghan economy from collapsing during the winter by getting cash flowing through the local economy again.
The UN development program has established trust funds in which the government can channel finances through the United Nations to specific programs in the field, rather than sending government money to the government, with Afghanistan now controlled by the Taliban.
“What we witness is not only the nation and the state in the midst of political chaos; what we witness is economic implosion,” said UNDP Head Achim Steiner told a press conference in Geneva.
Since the Taliban took over in August, banks run out of cash and civil servants were not paid.
The Afghan economy is in a trench condition with most of the assistance, food prices increase and unemployment of spiking.
UNDP concerns that on the current track, 97 percent of Afghan households can be below the poverty line at the beginning to mid 2022.
Money will be channeled through three different routes: cash for public work programs; Small grants to run a small business and start from the ground; and temporary basic income for the elderly and vulnerable.
The plan is to try bridging the gap between the current situation and 12 months, when there must be a clearer perspective on the long-term future Afghanistan.
Steiner said the planned program was discussed with the Taliban.
It is expected that by keeping the local economy float, Afghanista can stay alive and work in their local areas rather than fall into “despair, dahlaskan and displacement” and finally leave for another place, Steiner said.
The UN agency provides examples of small-scale interventions to maintain market functions, by funding micro businesses such as raising chickens to sell eggs, rather than people waiting to receive food handouts.
The activities that UNDP wanted to be borne by UNDP have charged around $ 667 million for the first 12 months, reaching around 4.5 million people, with the purpose of later to double the project if it can double the side of the fund.
This scheme has small seed funds but Germany will be among the first contributors, placing 50 million euros ($ 58 million).
Support will be given in Afghanistan currencies than the economy dollar.
Steiner said the biggest challenge was the economy with almost no domestic currency circulating.
“Our intention is to find a very fast way in which we can convert international support into local currencies,” he said.
“This is how you keep the economy alive and stop people to depend on donations.”